Lectra posts 8 percent drop in Q2 revenues

Lectra’s second quarter revenues of 115.9 million euros were down 8 percent, while EBITDA at 15.6 million euros decreased by 30 percent and EBITDA margin came to 13.4 percent, down 4.4 percentage points.

Against the backdrop of slower global growth, the anticipation of a recession risk in certain countries, persistent inflation, and continuously rising interest rates, Lectra said, orders for perpetual software licence, equipment and accompanying software, and non-recurring services at 39.2 million euros were down 27 percent in the second quarter of 2023.

The accelerating pace of sales in June brought second quarter orders to 35.7 million euros, an 11 percent increase over the first quarter. Orders for new software subscriptions, of which the annual value came to 2.8 million euros, continued to rise, displaying a growth of 53 percent compared to last year and 7 percent compared to the first quarter of 2023.

The company added that orders for perpetual software licence, equipment and accompanying software, and non-recurring services at 74.8 million euros were down 30 percent in the first half period of 2023. The annual value of new software subscription orders came to 5.5 million euros, up 31 percent.

Revenues came to 239.6 million euros, down 4 percent, while revenues from perpetual software licence, equipment and accompanying software, and non-recurring services at 79.5 million euros, were down 21 percent, while recurring contract revenues (88.6 million euros), which benefited from the growth in software subscription orders and the acceleration of synergies from the Gerber acquisition, increased by 11 percent. Revenues from consumables and parts at 71.4 million euros, were up 2 percent.

First half EBITDA was 35.3 million euros, down 21 percent and the EBITDA margin came to 14.7 percent, down 3.2 percentage points. Net income at 13.9 million euros, decreased by 31 percent at actual exchange rates.

At the beginning of the year, the group had set itself objectives of achieving revenues in the range of 522 to 576 million euros in 2023 and EBITDA before non-recurring items in the range of 90 to 113 million euros.

Given the delay in orders for new systems in the first quarter, and poor visibility on new systems orders for subsequent quarters, the Group reported on April 27 that it now anticipated revenues in the range of 485 to 525 million euros, down 5 percent to up 3 percent at constant exchange rates and EBITDA before non-recurring items in the range of 78 to 95 million euros, down 15 percent to up 3 percent at constant exchange rates.